Every year, as June 15 rolls around, hundreds of thousands of Americans living abroad receive the same unwelcome reminder: it's time to file US taxes again. For many, it's not just a box to check off. It's a stressful, expensive, and often overwhelming process. Tracking down statements, converting currency, understanding complex US tax rules, praying you don't owe any US tax, and then paying high accountant fees on top of that—it's no wonder so many expats dread this season.
If you're feeling the stress of this annual burden, you're not alone. June 15 serves as a stark reminder of how challenging it can be to stay US tax compliant. But here's the good news: it doesn't have to be this way. 2025 can be the last year you ever file a US tax return if you take the right steps to renounce your US citizenship correctly.
A 2024 CNBC article highlights that many American expats are considering renunciation due to the high costs and complexity of filing taxes from abroad. The United States is one of only two countries (the other being Eritrea) that taxes citizens on worldwide income in life and in death, creating financial and administrative burdens that often outweigh the benefits of holding a US passport. The growing trend of renunciation underscores the potential benefits for those looking to make 2025 their final year of filing.
Why Renounce in 2025?
Renouncing your US citizenship is a serious decision, but for many,
it's a strategic one. It can end years of complex reporting
requirements, save you hundreds of thousands in tax preparation
costs, and eliminate US tax owing in life and death for you and
your loved ones. At the same time, it can eliminate the annual
stress that comes with being tied to a tax system that no longer
reflects your life abroad. Renouncing now also insulates you from
any unfavourable changes in US tax law that may be coming under
current and new administrations. By planning ahead, you can secure
a renunciation appointment this year and ensure that your 2025
return is your last. However, you need to move quickly, as the 2025
dates to renounce are running thin!
Renouncing your US citizenship or terminating your Green Card can be a complex and intimidating process, and it must be done correctly. Failing to renounce properly can result in a US exit tax on all your worldwide assets, disbarment from the US for life, inheritance tax upon death, and more. We can ensure that the renunciation is done correctly to avoid all these potential pitfalls and more. Our team of experienced US tax attorneys and accountants helps between 900 and 1,200 people terminate their US status correctly every year across six continents – more than any firm in the world.
If you or a family member is a US citizen or Green Card holder considering renunciation, we invite you to visit our dedicated webpage for more information. This page contains links to register for our upcoming renunciation webinars. You can find one tailored to your geographic location in our events listings.
These webinars thoroughly review everything you need to know about the US citizenship renunciation process and available options, allowing you to make an informed decision about what is best for you and your family.
Moodys Tax Law is only about tax. It is not an add-on service, it is our singular focus. Our Canadian and US lawyers and Chartered Accountants work together to develop effective tax strategies that get results, for individuals and corporate clients with interests in Canada, the US or both. Our strengths lie in Canadian and US cross-border tax advisory services, estateplanning, and tax litigation/dispute resolution. We identify areas of risk and opportunity, and create plans that yield the right balance of protection, optimization and compliance for each of our clients' special circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
